Investment suggestion: since this year, the holding of the Winter Olympic Games has led to the increase of people's sports enthusiasm, and the overall performance of the sports shoes and clothing industry is good. However, in general, under the background of great downward pressure on the macro economy and the continuous conflict between Russia and Ukraine, the recent epidemic has had a great impact on offline consumption. The terminal consumption is weak, and the clothing end of downstream brands is more cautious, which is transmitted to the upstream textile manufacturing end, showing a slowdown in the overall order growth. Recently, the market fluctuates greatly, but the long-term logic of the industry is not changed. It is suggested to pay attention to three main lines: 1) textile manufacturing: the rising price of raw materials drives the increase of product prices, and the growth of orders at the manufacturing end slows down due to the weakening demand at the downstream. However, the moat of high-quality manufacturing enterprises at the head is relatively stable, and most of the partners are high-quality large customers with strong risk resistance, and the orders are in good condition, It is suggested to pay attention to the leader of medium and high-end accessories Zhejiang Weixing Industrial Development Co.Ltd(002003) ( Zhejiang Weixing Industrial Development Co.Ltd(002003) . SZ) and the leader of high-quality sports shoes Huali Industrial Group Company Limited(300979) ( Huali Industrial Group Company Limited(300979) . SZ); 2) Sports shoes and clothing: the success of the Winter Olympic Games has pushed people's sports enthusiasm to a new level. At present, the epidemic situation has repeatedly limited people's participation in sports, but the logic remains unchanged for a long time. It is suggested to pay attention to the leader of golf clothing Biem.L.Fdlkk Garment Co.Ltd(002832) ( Biem.L.Fdlkk Garment Co.Ltd(002832) . SZ); 3) Home textile: generation Z has gradually become the main force of consumption, with the consumption concept of pleasing oneself and creating a high-quality life. The replacement frequency of home textile has increased. Under the background of consumption upgrading, the leaders of medium and high-end home textile are expected to benefit. It is suggested to pay attention to Luolai Lifestyle Technology Co.Ltd(002293) ( Luolai Lifestyle Technology Co.Ltd(002293) . SZ) and Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) ( Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) . SZ).
Market review: from February 16 to March 15, 2022, the Shanghai Composite Index fell 11.09%, the Shanghai and Shenzhen 300 fell 13.40%, and the textile and garment (Shenwan) index fell 11.71%, ranking 13th among Shenwan's 31 primary industries. Among the secondary industries, the textile manufacturing (Shenwan) index fell 9.84%, and the clothing and home textile (Shenwan) index fell 11.06%.
Industry data tracking: 1) clothing and home textiles: from January to February 2022, the total retail sales of social consumer goods was 7.44 trillion yuan, with a cumulative year-on-year increase of 6.7%, of which the total volume of clothing, shoes and hats increased by 4.8% year-on-year; In terms of exports, from January to February 2022, the cumulative export amount of clothing was US $25.461 billion, a year-on-year increase of 6.10%, and the growth rate slowed down due to the high base of last year; The cumulative export amount of textiles was US $24.741 billion, with a year-on-year increase of 11.85%, which is expected to be mainly driven by the sharp rise in the price of upstream raw materials. 2) Textile manufacturing: as of March 15, 2022, China's cotton price 328 index was 22723 yuan / ton, a month on month decrease of 240 yuan and a year-on-year increase of 6660 yuan; The Cotlook a price index was 137.60 cents / pound, a month on month decrease of 1.60 cents and a year-on-year increase of 44.35 cents. Affected by the weakening of terminal demand, cotton prices have fallen slightly recently.
Risk tip: the price of raw materials fluctuates, the industry competition intensifies, and the end consumption is less than expected.
